Email marketing is an essential tool for real estate agents looking to connect with clients, generate leads, and nurture relationships. However, it’s critical to understand the legal framework governing email marketing to avoid hefty fines, protect your reputation, and build trust with your audience. In this post, we’ll outline the most important email marketing laws for real estate agents and how to comply with them.
Find It Fast
Why compliance matters for real estate agents
Email marketing is a powerful way to showcase listings, share market updates, and build relationships with clients. However, noncompliance with email marketing laws can damage your reputation, erode client trust, and result in significant financial penalties.
By prioritizing compliance, you’re not only protecting your business but also demonstrating your commitment to ethical and transparent communication — a critical element in building lasting client relationships.
What is the CAN-SPAM Act, and why does it matter?
The Controlling the Assault of Non-Solicited Pornography And Marketing (CAN-SPAM) Act was enacted in 2003 to establish rules for commercial emails, giving recipients the right to opt out of them and imposing penalties for violations. Noncompliance can result in fines of up to $50,120 per email, according to the Federal Trade Commission (FTC).
Key requirements of the CAN-SPAM Act include:
- Accurate sender information: Your “from,” “to,” and “reply-to” fields must clearly identify you or your business.
- Truthful subject lines: Subject lines must accurately reflect the content of the email.
- Advertising disclosure: If the email is promotional, disclose that it is an advertisement unless the recipient has specifically opted in to receive your marketing. A “promotional” email is anything designed to market, advertise, or promote the agent’s services, listings, or brand. These emails typically aim to generate leads, nurture prospects, or encourage recipients to take action, such as scheduling a consultation, attending an open house, or exploring a new listing.
- Provide a physical address: Your email must include your valid physical postal address.
- Opt-out options: Provide a clear way for recipients to unsubscribe from your emails, and honor opt-out requests within 10 business days.
Understanding GDPR and how it affects real estate agents
If you market to clients who may be in the European Union (EU), the General Data Protection Regulation (GDPR) applies to you, even if your business is located outside the EU. GDPR emphasizes transparency and consent in data collection and usage.
Important GDPR rules include:
- Explicit consent: Before sending emails, you must obtain clear, affirmative consent from recipients. Pre-checked boxes or ambiguous agreements are not allowed.
- Data access and deletion rights: Recipients have the right to request access to or deletion of any data you store about them.
- Breach notifications: If your data is breached, you must notify affected individuals within 72 hours.
Violations of GDPR can result in fines of up to €20 million or 4% of your annual global turnover, whichever is higher.
The importance of Canada’s CASL compliance
For agents marketing to clients in Canada, Canada’s Anti-Spam Legislation (CASL) regulates email communications. CASL focuses heavily on obtaining consent before sending any electronic communication (such as an email, text, or social media message) that promotes or encourages participation in a commercial activity, including buying, selling, or investing in real estate services.
Key CASL requirements include:
- Implied vs. express consent: Implied consent applies when there’s an existing business relationship, such as a past transaction or inquiry. It must be renewed six months after an inquiry or two years after a transaction. Express consent — given through written or verbal agreement — has no expiration date and allows ongoing communication until the recipient unsubscribes. Since implied consent requires tracking expiration dates, express consent is safer and preferred, ensuring long-term compliance.
- Identification: Clearly identify yourself and your business in every email.
- Unsubscribe mechanism: CASL requires an easy-to-use unsubscribe option that remains valid for at least 60 days in every message.
Noncompliance with CASL can result in penalties of up to $1 million for individuals and $10 million for businesses. A solo real estate agent could be classified as either an individual or a business, depending on how they operate. If the agent is registered as a sole proprietor, they may be considered an individual under CASL. However, if they operate under a corporation or brokerage, they could be classified as a business and subject to the higher penalty threshold.
Best practices for email marketing compliance
Staying compliant with email marketing laws is not just about avoiding fines — it’s about maintaining trust with your audience. Here are some best practices to ensure you’re on the right side of these regulations:
- Use double opt-in: Implement a system where a subscriber signs up for your emails and then confirms their subscription via a follow-up email.
- Segment your email list: Target recipients based on their preferences and engagement history to avoid sending irrelevant content.
- Regularly update your list: Remove inactive subscribers and ensure your list of contact information is accurate and up to date.
- Monitor third-party email tools: Ensure that your email marketing software complies with all applicable laws and offers tools to support compliance. Even if you don’t work in the EU or Canada, someone on your mailing list could relocate there at any time, putting your business at risk.
- Train your team: Educate your staff about email marketing laws and best practices to minimize the risk of violations.
Email marketing + Luxury Presence
To take your email marketing to the next level, consider leveraging tools designed to simplify compliance and maximize your reach. Luxury Presence offers everything you need to create, manage, and optimize email campaigns while staying compliant with all major email marketing laws.
Luxury Presence can elevate your marketing strategy
Learn how we can help take your real estate business to the next level. Schedule a time to speak with one of our branding experts today.
